Gentherm Inc. (THRM) has reported an 113.59 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $25.40 million, or $0.69 a share in the quarter, compared with $11.89 million, or $0.33 a share for the same period last year.
Revenue during the quarter grew 15.55 percent to $249.27 million from $215.71 million in the previous year period. Gross margin for the quarter expanded 253 basis points over the previous year period to 34.16 percent. Total expenses were 86.02 percent of quarterly revenues, down from 86.15 percent for the same period last year. This has led to an improvement of 13 basis points in operating margin to 13.98 percent.
Operating income for the quarter was $34.85 million, compared with $29.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $45.22 million compared with $40.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 56 basis points in the quarter to 18.14 percent from 18.71 percent in the last year period.
"Our revenue performance and growth rate, which benefited from the impact of our acquisition of CSZ in the second quarter of 2016, were right in line with our expectations. We are starting to benefit from a modest recovery in GPT, our business that sells into the energy sector, which has experienced market related softness for over a year now. The automotive market, which represents the majority of our revenues, continues to be strong, benefiting from improved opportunities for our existing products as well as potential future revenues from new products still in our development pipeline," said president and chief executive officer Daniel R. Coker.
For the financial year 2017, Gentherm Inc. expects revenue to grow in the range of 5 percent to 10 percent.
Operating cash flow turns negative
Gentherm Inc. has spent $21.34 million cash to meet operating activities during the quarter as against cash inflow of $6.35 million in the last year period.
The company has spent $15.55 million cash to meet investing activities during the quarter as against cash outgo of $16.99 million in the last year period. It has incurred net capital expenditure of $13.55 million on net basis during the quarter, down 20.24 percent or $3.44 million from year ago period.
The company has spent $8.47 million cash to carry out financing activities during the quarter as against cash inflow of $72.93 million in the last year period.
Cash and cash equivalents stood at $133.91 million as on Mar. 31, 2017, down 36.40 percent or $76.65 million from $210.56 million on Mar. 31, 2016.
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